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    Thread: General Motors recalled 1.14 Lakh Tavera, Fired top officials and may recall some other car models

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      General Motors recalled 1.14 Lakh Tavera, Fired top officials and may recall some other car models

      Looks like some serious trouble in GM India.

      They recalled 1.14 lakh Tavera. Then fired 25 top officials including Anil Mehrotra, Chief Finance Officer. And now probability of recalling Sail twins.

      GM recalls 1.14 lakh units of Chevrolet Tavera - The Hindu

      Now, GM may recall Sail compact, sedan - Hindustan Times

      Post Tavera recall fiasco, General Motors fires top executives - The Economic Times

      GM India's Tavera recall puts auto industry under the lens - The Economic Times
      Last edited by Jack Sparrow; 30th Jul 2013 at 11:33.

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      The Source

      http://timesofindia.indiatimes.com/b...w/21638293.cms

      General Motors India is facing a fine of at least Rs 3.4 crore for violating technical specifications to meet emission norms in manufacturing of Tavera that led to the recall of 1.14 lakh vehicles.

      On Monday, a review meeting was convened by the transport ministry that was attended by officials from other ministries, including department of heavy industries. According to Section 177 of the act, whosoever contravenes any provision of the act can be fined Rs 100 for the first offence and Rs 300 for every subsequent offence. Going by this calculation, the minimum total fine would be around Rs 3.4 crore, taking each recalled vehicle as one unit of offence, a source said.

      Meanwhile, lobby groups have raised the issue of consumers being taken for a ride since they could not detect the "invisible" compromise. "As per Section 199 of the act, any company and every person, who at the time the offence was committed, was in charge shall be deemed to be guilty and shall be liable to be proceeded against and punished accordingly," said S P Singh of IRTFT.

      He added that they have demanded replacement of vehicles since all these over one lakh Taveras are running with fudged registration certificates. Transport ministry sources said the company has submitted a fresh prototype of an engine for Tavera BS-III to the Automotive Research Association of India (ARAI). The testing of the prototype engine is likely to be completed in the next four weeks. "Then the company will actually start recalling the vehicles to change the equipment," said a source.
      Sad to see this from GM and have to see the development in this case and what is the cost that GM has to bear totally because of this. Fine + replacement costs.

      And moreover how many out of the 1.14 lakh cars come to GM for replacement.

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      Well, all these scam happened during the reign of Karl Slym and post his departure the cat is out the bag followed by pink notice and fine.

      The man who took the brand GM up in India was also responsible for this fall as he was head of India operation and wonder how without his knowledge all these would have happen?? Logically GM should have initiated a case against him for denigrating the value of GM, which dint happen, also Why TML still has him if he was part of the scam?
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      Quote Originally Posted by camchennai View Post
      as he was head of India operation and wonder how without his knowledge all these would have happen??
      You bet. i would also hold ARAI authorities responsible for this fiasco. ARAI as a part of COP (Confirmity of production) inspects the production plant every 3, 6 months or on a monthly basis depending on the sales and randomly picks 3 vehicles that have to be despatched to ARAI for emission testing to check if the production vehicles meet the emission norms. If any vehicle had failed to meet the norms, the OEM would have go to know about this . Looks like some kind of collusion b/w the OEM and testing agency

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      Quote Originally Posted by suresh_gs View Post
      You bet.
      But why no action was initiated both on ARAI and Karl? GM being a global company would have a strong ethics in place and this being damaging company name, they should have filed a defamation suit...

      And can anyone confirm when Karl left GM?
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      Quote Originally Posted by camchennai View Post
      And can anyone confirm when Karl left GM?
      He headed GM India till jan 2012.

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      There were 3 MD during this period (Rajeev Chaba, Karl Slym and Lowell Paddock) and wonder why no action taken on them
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      Quote Originally Posted by camchennai View Post
      GM being a global company would have a strong ethics in place
      Ethics do NOT to come bundled with Global ness, It is a intentional and conscious practice by management at all levels at all times without any momentary lapse of judgements included.

      Quote Originally Posted by camchennai View Post
      But why no action was initiated both on ARAI
      ARAI is not a Regulator. They are only a Test House as per my understanding. They do not have enforcement responsibility.

      Quote Originally Posted by camchennai View Post
      Karl?
      Global (American) Companies work in a Matrix Organization. Product Unit, Business Unit, Industry Unit, Sub Systems unit, Country Organization etc, who all work together. Country MD is the representative of the parent holding company for a statutory - fiscal - taxation - investment- employee engagement perspective. He is generally not the sole responsible for business and product performance, which is the responsibility of the BU, Product and Sales Guys, Industry Unit is responsible for cost of goods sold, manufacturing, supply chain, quality conformance as per stated specs/design etc.

      I read somewhere that all the guys who were part of this issue/malpractice has been sacked. the two engineers who discovered this issue and reported it have also left the organization. the investigator who came over to inspect this issue is still said to be in the organization.
      Last edited by Nomad; 11th Dec 2013 at 17:33.

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      Quote Originally Posted by Nomad View Post
      Ethics do NOT to come bundled with Global ness, It is a intentional and conscious practice by management at all levels at all times without any momentary lapse of judgements included.
      Why I mentioned global company here is due to the fact that they operate in multiple geography and will have a strong HR policies in place considering the exposure they have in different countries.
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